HEALTH FUNDING - THE NATURE OF DISTORTIONS AND IMPLICATIONS FOR THE HEALTH-SERVICE MIX

With restricted public sector budgets, there is increasing pressure to obtain Value for money in the allocation of health sector resources. Distortions and inefficiencies created by features of Australia's heal th funding arrangements prevent health resources moving from lower val ued to higher Valued activities. These distortions tend to restrict re sources being allocated to disease prevention and health promotional a pproaches, favouring medical treatment. These propositions are illustr ated. largely with reference to diabetes.